Chinese president's South Korea trip expected to advance FTA talks

South Korean banks have witnessed a large amount of yuan deposits since the second half of last year, with the total volume reaching $11.3 billion at the end of May, up as much as 70 percent compared with the beginning of the year.

South Korea expressed its intent in April to build up yuan offshore trading markets. With the increasing internationalization of the Chinese currency and the deepening of the bilateral financial cooperation, the yuan fervor in South Korea will continue.

The central bank of South Korea has earned the status as a qualified foreign institutional investor, allowing it to invest in stocks and bonds traded on China's financial markets.

The bank earned an expanded quota for its investment in China's stocks markets. It was permitted to invest an additional $300 million in yuan-denominated assets.

China and South Korea have also been exploring ways to strengthen cooperation in new energy and green industry, which will have a positive influence on the long-term, stable and sustainable development of the two countries' economies.

On another level of cooperation, China and South Korea can learn from each other's development experiences.

Some South Korean experts have advised China to draw experiences from their own country in overcoming the middle income trap, which is a major challenge on the road of China's development.

South Korea successfully escaped the middle income trap by carrying out profound market reforms and developing knowledge economy, the experts said.

During his two-day stay, Xi will meet with South Korean President Park Geun-hye, National Assembly Speaker Chung Ui-hwa and Prime Minister Chung Hong-won. He will also address economic and trade events.

China and South Korea are also expected to release a joint statement and sign a number of cooperation documents covering economy and trade, finance, environment and consular affairs.